The announcement comes at a time when there appears to be signs of a shift towards building electric cars by some of the world’s major car manufacturers.

For example, earlier this month Swedish car-maker Volvo announced that from 2019 onwards all new cars it produces will be partially or completely battery-powered.

And this week, BMW announced that a fully-electric version of the Mini would be built at its Cowley plant in Oxford from 2019.

But what about Toyota, which has its UK car manufacturing plant at Burnaston, in Derbyshire?

The Auris Hybrid, which runs on petrol and electricity, is built at Toyota's Burnaston factory

For several years now, the company has been making the Auris Hybrid at Burnaston - a car that runs on a combination of petrol and electricity.

Twenty years ago it blazed a trail with its first ever hybrid-powered car - the Prius - and more latterly, the “plug-in” Prius, that can recharge its batteries at charging points. Yet it is still yet to go down the road of making a mass-produced electric car.

Instead, it has gone down the route of hybrids and other kinds of power. In 2015, it introduced a hydrogen fuel cell-powered car to the UK called the Mirai, which means ‘future’ in Japanese.

Toyota's 'plug-in' Prius charges up

Known as hydrogen fuel cell vehicles, or FCVs, they are considered to be the most viable eco-friendly solution to reducing the environmental impact of motoring.

The cars are powered by electricity created by the chemical reaction between hydrogen and oxygen, leaving water vapour as the only tailpipe emission.

In light of the Government’s aim to outlaw new diesels and petrol vehicles, it remains to be seen whether Toyota persists with FCVs - or starts developing an all-electric product.

The Toyota Mirai, which was introduced to the UK in 2015 and runs on hydrogen

According to some reports, the Japanese manufacturer may already be thinking about this as rumours have surfaced about it developing revolutionary battery technology.

A recent report in the Japanese newspaper the Chunichi Shimbun claimed that Toyota was working on an electric car powered by a new type of battery that significantly increases driving range and reduces charging time, aiming to begin sales in 2022.

The newspaper claimed that Toyota's new electric car, to be built on an all-new platform, will use all-solid-state batteries, allowing it to be recharged in just a few minutes.

By contrast, current electric vehicles, which use lithium-ion batteries, need 20 to 30 minutes to recharge even with fast chargers and typically have a range of just 185 to 250 miles. However, Toyota has not confirmed the report.

There is also no detail yet of whether the Government’s ban would extend to other types of vehicles.

JCB’s factory at Foston, called JCB Power Systems, develops and manufactures class-leading diesel engines for its machines. Will the ban on diesels force it to rethink how its products are powered?

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Toyota said that its response to the plans, like all manufacturers, was being led by industry trade body the Society for Motor Manufacturers and Traders.

The SMMT has said it is concerned that an outright ban, particularly on diesel cars, could hurt the sector. It is also concerned about the proposed pace of change, which it believes might harm an industry that is currently thriving.

JCB makes diesel engines in Derbyshire for its machines

Although it has in the past published data which suggests that motorists are shunning diesel cars for more eco-friendly vehicles amid rising costs and emissions scandals, it says that alternatively-fuelled vehicles still only represent a small percentage of the overall market.

SMMT chief executive Mike Hawes said: “The Government's ambition for all new cars and vans to be zero emission by 2040 is already known.

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“Industry is working with government to ensure that the right consumer incentives, policies, and infrastructure is in place to drive growth in the still very early market for ULEVs in the UK.

“However, much depends on the cost of these new technologies and how willing consumers are to adopt battery, plug in hybrid and hydrogen cars.

“Currently demand for alternatively fuelled vehicles is growing but still at a very low level as consumers have concerns over affordability, range and charging points.

“Outright bans risk undermining the current market for new cars and our sector which supports over 800,000 jobs across the UK so the industry instead wants a positive approach which gives consumers incentives to purchase these cars.

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“We could undermine the UK’s successful automotive sector if we don’t allow enough time for the industry to adjust.”

Meanwhile, the Unite union, which represents much of the UK’s car manufacturing workforce, including Toyota’s, has called for a national debate on the plans.

The UK car manufacturing sector is currently thriving

Tony Burke, assistant general secretary at Unite, said: “This has wide ranging implications for the UK economy and future employment prospects for hundreds of thousands of skilled workers.

“The automotive industry is the jewel in the crown of British manufacturing and that renaissance over the last 15 years has been partly due to the close working between the employers and union. Nothing should be done that would jeopardise this hard-won success.

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“It needs the most careful consideration and we are calling for a national debate embracing employer, Unite and ministers to delve into all the aspects of what is proposed.

“The Government has one shot at this and need to get it right and must not damage our automotive industry.”

Will there be enough electric car charging points come 2040?

The main reason why the Government is pushing for this is because pollution is thought to be linked to about 40,000 premature deaths a year in the UK, and transport also contributes to greenhouse gas emissions.

But there are still a number of barriers to overcome before the day comes that we are all driving around in electric cars.

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The first is affordability. At the moment, electric cars are not cheap - however, like most things, the price should come down as they become more popular.

The second is infrastructure. Massive investment needs to be made to ensure there are enough charging points around the UK to make electric cars practical. There are currently around 4,500 charging points in the UK.

There are a number in Derbyshire - but not all of them are available to be used by the general public.

If the Government wants all motorists to go electric, there will need to be many more than this by 2040.

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‘I’ve been driving an electric car for over a year - and would never go back to petrol or diesel!’

When Derbyshire businessman Murray Carmichael-Smith was looking for a more cost-effective and environmentally-friendly company car he decided to go electric.

Just over a year ago he purchased an all-electric BMW i3 - and he says he has not looked back since.

Mr Carmichael-Smith lives in Duffield but works in Nottingham for a company called BCS Agency, which specialises in digital, PR and social media marketing. In his line of work, he racks up thousands of miles every year.

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He said: “Before I bought the i3 I had a diesel BMW X5. I had become tired of having to fill it up every 10 days at £120 a pop.

“I’ve got Scottish blood in me and I wanted a car that could give me better value for money. When I gave the i3 a test drive I was really impressed. It had the same front end response as a VW Golf GTI.”

The all-electric BMW i3

According to BMW, the price of the i3 starts at £32,340. But Murray says he has already saved a lot of money after just 13 months of motoring.

He said: “To charge up the i3 costs about £1.50. All told, I think over the course of a year it has cost me £120 to run. That would be one tank of fuel for my old BMW X5.”